Unitnomics

Franchises · 2026 FDD · Wisconsin DFI filing 641241

Palm Beach Tan franchise cost, unit revenue and closures

Opening a Palm Beach Tan cost $755,390 to $1,263,712 in the 2026 FDD; the median unit sold $504,916 in the franchisor's 2025 calendar year figures; 8.3% of franchised units closed over three years.

Franchisor: Palm Beach Tan Franchising, Inc.. FDD issued 2026-04-23. Fiscal year end 2025-12-31. Figures re-found on the cited page 2026-11-03.

What a unit costs to open

Initial investment range$755,390 – $1,263,712Item 7, p. 15
Midpoint (site arithmetic)$1,009,551(low + high) ÷ 2

single Location.

What a unit pays the franchisor

Initial franchise fee$30,000Item 5, p. 8
RoyaltyRoyalty Fee 4% of Gross Sales in months 1 to 12, 5% in months 13 to 24, 6% from month 25Item 6, p. 9
Advertising fundAdvertising Fund 2% of Gross Sales, plus 3.5% local advertisingItem 6, p. 9

less any development fee credit.

The 6% is the rate from the third year; the first two years ramp from 4%.

What a unit sells

Item 19 is optional and is the franchisor's own representation. It is shown here as filed, with the franchisor's measure, sample and period, and nothing is estimated where it is missing.

Median unit revenue$504,916Item 19, p. 57, 58
Average$549,415171 units (44.0%) at or above
Measuretotal revenues (EFT membership plus other revenue), calendar 2025, franchised Sample Locations (Part II.A, Table 1)
Sample314 units: 314 franchised Sample Locations open all of 2025, averaging 9.88 years in operation; excludes 8 that stopped operating during the year; Part I gives the same figures for 310 company-owned locations (average $524,160, median $503,288) with operating costs and EBITDA
Period2025 calendar year
High / low$1,474,039 / $179,150

Revenue to investment

Median revenue ÷ investment midpoint0.50$504,916 ÷ $1,009,551
At the low and high end of Item 70.67 / 0.40÷ $755,390 and ÷ $1,263,712

Formula: Item 19 franchised median / Item 7 total (midpoint, low, high). A ratio of 1.00 means one year of median unit revenue equals the investment; it says nothing about profit.

How many units open and close

Franchised units202320242025
Start of year348398397
Opened6272
Terminated1088
Not renewed101
Reacquired by franchisor0066
Ceased, other reasons100
End of year398397324
Company-owned, end of year257253310

Item 20, Table 1 p. 59; Table 3 totals p. 63.

Three-year closure rate8.33%29 closures ÷ 348 at start of 2023
Three-year net change, franchised-24 (-6.9%)end 2025 − start 2023

Closures are the franchisor's Item 20 counts of units terminated, not renewed, or ceased for other reasons, summed over 2023–2025 and divided by franchised units at the start of 2023. Units the franchisor reacquired are not closures. This is an Item 20 count, not a failure rate.

all three rows sum; 66 franchised locations were reacquired by the franchisor in 2025.

Source and method

Every figure above comes from the Palm Beach Tan Franchise Disclosure Document issued 2026-04-23, as filed with the Wisconsin Department of Financial Institutions (filing 641241, registry record). The PDF is the franchisor's and is not hosted here; the item and page beside each figure is where to check it. Item 7 and Item 20 tables were read cell by cell; Item 19 was read by hand; each Item 20 year was checked to sum (start + opened − exits = end) before it was recorded.

Informational only, not professional, legal or investment advice. Unitnomics computes from the filing and does not advise on, rank, or refer to any franchise. Last reviewed: November 2026.

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